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Thailand’s flag carrier Thai Airways International (THAI) recorded a net profit of 55.1 billion baht in 2021, recovering from a massive net loss of 141 billion baht in 2020. The earnings, however, were driven by gains from debt restructuring rather than flight revenues.
The debt-ridden airline reported that it gained around 62 billion baht in 2021 from its debt restructuring process, which was approved by the Central Bankruptcy Court in July 2020.
Chai Eamsiri, acting Chief, Finance and Accounting, said Thai Airways has resumed its international routes in Asia, Europe, and Australia since the fourth quarter of 2021 in line with the reopening of Thailand.
He added that subsidiary Thai Smile was able to operate domestic flights after the easing of travel bans in light of the Covid-19 outbreaks during the third quarter.
The earnings report shows an 84-per-cent drop in passenger revenues in 2021 to 5.5 million baht compared to the previous year, while revenues from cargo service rose by 59 per cent to 11 billion baht.
“Currently, foreign cargo services flights generate the majority of Thai Airways’ earnings.”
As of the end of 2021, total Thai Airways’ assets stood at 161.2 billion baht, down 23 per cent year-on-year. Total liabilities were 232.5 billion baht, also down 31.2 per cent year-on-year.
During the rehabilitation, the airline has pursued a variety of practices to offset its losses, including selling equities and assets and developing its catering segment.
Shares in Thai Airways are now suspended from trading on the Stock Exchange of Thailand (SET) given no remarks from its auditors amid uncertainties over the current situation.